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May 29, 2022

Lifecore Biomedical Q4 2022 Earnings Report

Reported an increase in Lifecore segment revenues and adjusted EBITDA, alongside consolidated revenue growth, while facing a net loss due to impairment charges and restructuring costs.

Key Takeaways

Landec Corporation reported a 6.0% increase in consolidated revenues for Q4 2022, driven by growth in both Lifecore and Curation Foods segments. However, the company experienced a net loss due to a non-cash goodwill and intangibles impairment charge and restructuring costs, despite an increase in Lifecore segment adjusted EBITDA.

Consolidated revenues increased by 6.0% year-over-year to $47.6 million.

Lifecore segment revenues increased by 6.9% to $27.6 million.

Consolidated net loss from continuing operations was $35.9 million, including a $27.0 million impairment charge.

Lifecore segment adjusted EBITDA increased by 15.9% year-over-year to $8.9 million.

Total Revenue
$47.6M
Previous year: $140M
-65.9%
EPS
-$0.01
Previous year: $0.07
-114.3%
Gross Profit
$11.5M
Previous year: $24.8M
-53.6%
Cash and Equivalents
$991K
Previous year: $1.3M
-23.5%
Free Cash Flow
-$7.65M
Previous year: -$7.97M
-4.0%
Total Assets
$275M
Previous year: $503M
-45.4%

Lifecore Biomedical

Lifecore Biomedical

Forward Guidance

The company introduced its full year fiscal 2023 guidance for its Lifecore and Corporate segments.

Positive Outlook

  • Lifecore segment revenue: range of $122 million to $126 million (+12% to +15%)
  • Lifecore segment adjusted EBITDA: range of $31.0 million to $32.5 million (+7% to +12%)

Challenges Ahead

  • Other segment (corporate expense): range of ($7.0) million to ($7.5) million